If you’ve never sold at a consignment shop, you may be a little skeptical. How does it work, and what makes this shop entitled to a portion of the sale price on my incredible, amazingly stylish items that I paid thousands of dollars to acquire?
In other words: is consignment a good idea?
You could argue that we’re biased here, but YES selling on consignment is a good idea for most people – particularly those who don’t spend their time buying + selling items.
Selling clothes or furniture can be challenging and time-consuming.
Here’s a quote that speaks to the situation:
“It’s easy to buy something. It’s harder to sell it, and it’s even harder to sell something at a profit.”
Jean Chatzky, Money Rules
You may disagree that it’s “hard to sell something” after a few easy transactions on Craigslist or Facebook marketplace. If that’s you, and your lifestyle permits a lot of selling on Craigslist, then consignment stores are not for you. Feel free to stop reading now!
Some people don’t have the time to sell their belongings piece by piece. Or it’s simply not how they choose to spend their time.
So with that established, let’s answer the original question: are consignment shops worth it? Or more accurately: who should use a consignment shop, and when?
The situation is:
You need to sell something. It’s a valuable thing. Maybe you’ve invested your hard earned money into it, or your family did. These items typically include valuable furniture, designer clothes, and art.
The facts are:
Selling something requires a certain amount of work. These days, successful online selling requires research, customer service, photography and writing skills.
More work may equal a better chance of success. The best online sellers make the effort to present used items as appealing, viable alternatives to brand new products.
More exposure will increase the chance of success. Simple math tells us that more viewers on a product listing means a higher likelihood that product will sell.
4 questions:
- Are you willing to do the work?
- Do you have the right skills to do the work?
- Do you have adequate knowledge of the product(s) to sell?
- Can you get adequate exposure to an audience of buyers?
If the answer is NO, then a consignment shop is worth it for you. Find one with the established process and skills to sell your merchandise, and a following of loyal customers.
If the answer to these questions is YES, then consignment shops are not worth it, and you should take the time to sell things on your own. There are numerous ways to do it through local or International marketplaces.
What percentage does a consignment shop take?
30% to 50% is the typical commission rate for consignment stores. To sweeten the deal, many shops have special offers in place in which they pay out more for highly valuable pieces, or things that sell quickly. Although the commission rate is important to know, it’s just one of many factors to consider when you partner with a consignment shop.
How much can you make at a consignment shop?
The limiting factor is your merchandise. If you have high demand / high value items, then you can make thousands of dollars. However, the average collection from a personal wardrobe earns several hundred bucks for the consignor.